Selected key distributed software products, acquired from Candle Corporation, further leverage the
powerful solutions of IBM Tivoli® to help meet the enterprise's growth demands. These products
are available exclusively through IBM Passport Advantage® and IBM Passport Advantage Express.
Passport Advantage and Passport Advantage Express are simple, comprehensive loyalty programs that
provide software license acquisition and renewable Software Maintenance (product updates and
technical support) using a common set of processes and tools.

The product version and release numbers have been updated to reflect new program numbers, but the
functionality of the products has not changed from the previously available products.

If you currently have maintenance for heritage Candle distributed products, you will be contacted by
IBM to migrate your entitlements to the products listed below or other replacement products. Refer
to the
Conversion of licenses and support
section for migration details.

This release provides only licensing and pricing information in line with
standard IBM offerings. There are no changes to the underlying code, and
the functions and benefits have not changed.

Product briefs

IBM Editor for Messages for Distributed Systems can help develop and edit
WebSphere MQSeries®. During new application development, test messages
can be created. During the application testing and tuning phases, test
cases can be created, rerun, and changed. IBM Editor for Messages for
Distributed Systems is an easy-to-use Java-based client-server product
that can support a number of message formats and provide XML message
editing capabilities.

IBM Tivoli AF/Remote  an outboard automation solution for secure
remote access to mainframe and distributed systems regardless of
location. IBM Tivoli AF/Remote provides integrated access to these
mainframe and distributed systems via Transmission Control
Protocol/Internet Protocol (TCP/IP) network and dial-up, so remote
administrators can gain the same TN3270 console emulation functions
available to data center operators. Also, IBM Tivoli AF/Remote can
provide automatic notification and escalation of problems via e-mail and
wireless devices. As an outboard solution, IBM Tivoli AF/Remote can
integrate monitoring and automation packages and frameworks, while also
automating tasks that cannot be initiated by an MVS-based system
itself.

IBM Tivoli IntelliWatch  a comprehensive systems management solution
for Lotus® Domino, offering a wide range of features including
automated problem detection and correction, system-wide product
configuration options, custom statistics and reporting capabilities, and
fault recovery. Sending native format events to the IBM Tivoli
Enterprise Console is just one of the many notification options in IBM
Tivoli IntelliWatch Pinnacle.

IBM Tivoli OMEGAMON XE for WebSphere Application Server  lets you to
see inside the "black box" to quickly pinpoint problems that can lead to
a loss of customers and business. Performance problems that once took
days or weeks to find can often be isolated in minutes or hours. During
testing, it can help you track bottlenecks down to the method and
Application Programming Interface (API) call levels. In production, it
can monitor and centrally administer the performance of Web applications.

IBM Tivoli OMEGAMON XE for WebSphere Business Integration  a powerful
performance-monitoring solution that presents a single integrated view of
your entire messaging environment for end-to-end control of all your
middleware applications.

IBM Tivoli OMEGAMON Dashboard Edition (DE) provides the capabilities to
consolidate information from all of the OMEGAMON XE products into a
single infrastructure view, providing a mainframe integrated view of all
major systems and components into a single user view. The OMEGAMON DE
product also includes a graphical workflow editor to define comprehensive
automation routines and a policy manager to control the automated
actions.

More detailed information, about the IBM Tivoli products in this
announcement, is available at the following Web sites:

IBM will contact you and give you the opportunity to convert your use
entitlements, over time, from the current portfolio to the replacement
products. The following table provides a product mapping, and whether or
not a trade up charge may apply. A trade up is an incremental license
fee to move up from one product to another. You must be current on
maintenance to be eligible for conversions. If you are not current on
maintenance, you will have to pay a get-current or maintenance
reinstatement fee.

In some instances, separately charged features will be imbedded in the
new solution. In these cases, only the license capacity for the base
product is used for the current entitlement level for migration.
Products in this category are identified with
####
after the current offering name in the table below.

The conversion is for the same capacity as currently licensed when
converted to the pricing metric announced for the replacement offering
(for example, server or capacity units to processors). Initial migration
quotes will be generated using standard ratios, although you will be
migrated to ensure that you are entitled to use the software on the same
systems that you are currently managing by adjusting the processor
quantities where required.

MVS, Domino, and Tivoli Enterprise are trademarks of International Business Machines Corporation in
the United States or other countries or both.

Tivoli, Passport Advantage, WebSphere, MQSeries, Lotus, zSeries, OS/400, NetView, and Lotus Notes
are registered trademarks of International Business Machines Corporation in the United States or
other countries or both.

Windows, Microsoft, and Windows NT are trademarks of Microsoft Corporation.

Java is a trademark of Sun Microsystems, Inc.

UNIX is a registered trademark of the Open Company in the United States and other countries.

Linux is a trademark of Linus Torvalds in the United States, other countries or both

Other company, product, and service names may be trademarks or service marks of others.

Training is available, or will be available, for IBM Tivoli® products. Education is offered
through IBM Global Services  IT Education Services and through IBM Tivoli Software Authorized
Training Providers.

IBM Global Services  IT Education Services provides education to support many IBM offerings.
Descriptions of courses for IT professionals and managers are on the IBM IT Education Services Web
site

The Publications Center is a worldwide central repository for IBM product
publications and marketing material with a catalog of 70,000 items.
Extensive search facilities are provided. Payment options for orders are
via credit card (in the U.S.) or customer number for 50 countries. A
large number of publications are available online in various file
formats, and they can all be downloaded by all countries free of charge.

PNS enables subscribers to set up profiles of interest by order
number/product number. PNS subscribers automatically receive e-mail
notifications of all new publications defined in their profiles. These
may then be ordered/downloaded from the Publications Center.

IBM Tivoli OMEGAMON DE for Distributed Systems can allow you to see information from a wide variety
of tools in one location, from multiple OMEGAMON XE monitors. Consequently, you need one of the
following IBM Tivoli OMEGAMON XE products:

Each machine, whether running the workstation components, Manager Server, or Reporter, must have
TCP/IP or e-mail for data transmission

Windows 2000

AIX 4.2 or 4.3

HP-UX 10.20 or 11.0

Solaris 2.5, 2.6, or 2.7

Linux kernel 2.2.16, or later, Intel architecture

ODBC or JDBC driver if data will be logged to an external database

Microsoft Winsock 2

Citrix Metaframe 1.0, 1.8, or XP

Refer to the product documentation for relevant requirements information for the component that you
have installed.

IBM Tivoli Web Response Monitor V2.0.0

Depending upon the component that you are installing:

Windows 2000 or Windows 2000 with service pack 3

Windows XP

Windows 2003

AIX 4.3

HP-UX 11.0

Solaris 2.7 or 2.8

Linux kernel 2.2.16, or later, Intel architecture

JRE 1.1.8 for Manager Client on all UNIX platforms

JRE 1.3.1 for Manager Client on Linux

TCP/IP or e-mail for data transmission

Network Packet Protocol tools (Windows only)

SMS 2.0 Network Monitor

ODBC or JDBC driver

Refer to the product documentation for relevant requirements information for the component that you
are installing.

IBM Tivoli Web Segment Analyzer V2.0.0

Depending upon the component that you are installing:

Windows 2000 or Windows 2000 with service pack 3

Windows XP or Windows XP with service pack 1

AIX 4.3

HP-UX 11.0

Solaris 2.7 or 2.8

Linux kernel 2.2.16, or later, Intel architecture

JRE 1.1.8 for Manager Server on all UNIX platforms

JRE 1.3.1 for Manager Server on Linux

Network Packet Protocol tools (Windows only)

TCP/IP or e-mail for data transmission

E-mail for sending reports to e-mail accounts

ODBC or JDBC driver

Refer to the product documentation for relevant requirements information for the component that you
have installed.

Planning information

Software Maintenance, previously referred to as Software Subscription and Technical Support, is
included in the Passport Advantage Agreement. Installation and technical support is provided by the
Software Maintenance offering of the IBM International Passport Advantage Agreement. This fee
service enhances customer productivity, with voice and electronic access into IBM support
organizations.

Security, auditability, and control

The products announced in this software announcement use the security and auditability features of
the operating system software.

The customer is responsible for evaluation, selection, and implementation of security features,
administrative procedures, and appropriate controls in application systems and communication
facilities.

IBM Tivoli Enhanced Value-Based Pricing terminology

IBM Tivoli Enhanced Value-Based Pricing:
IBM Tivoli software products are priced using IBM Tivoli's Enhanced Value-Based Pricing. The
Enhanced Value-Based Pricing system is based upon the IBM Tivoli Environment-Managed Licensing
Model, which uses a managed-environment approach  whereby
price is determined by what is managed
rather than the number and type of product components installed.

Unlike typical systems management licensing models that require entitlements of specific software
components to specific systems, the IBM Tivoli Environment-Managed Licensing Model provides the
customer flexibility to deploy its IBM Tivoli software products within its environment in a manner
that can address and respond to the customer's evolving architecture. That is, as the architecture
of a customer's environment changes, the customer's implementation of IBM Tivoli software can be
altered, as needed, without affecting the customer's license requirements (as long as the customer
does not exceed its entitlements to the software).

Under Enhanced Value-Based Pricing, licensing and pricing of server-oriented applications are
determined based upon the server's use in the customer's environment. Typically, such applications
are licensed and priced in a manner that corresponds to each installed and activated processor of
the server managed by the IBM Tivoli application to help correlate price to value while offering a
simple solution.

Where a server is physically partitioned, this approach is modified. This partitioning technique is
the approach used with systems that have either multiple cards or multiple frames, each of which can
be configured independently. For servers capable of physical partitioning (for example, the IBM
eServer pSeries® Scalable POWERparallel® Systems servers, Sun Ultra servers, and HP Superdome
servers), an entitlement is required for each processor in the physical partition being managed by
the IBM Tivoli application. For example, assume that a server has 24 processors installed in
aggregate. If this server is not partitioned, entitlements are required for all 24 processors. If,
however, it is physically partitioned into three partitions each containing eight processors, and
Tivoli products were managing only one of the three partitions, then entitlements would be required
for the eight processors on the physical partition managed by the IBM Tivoli application.

For servers with virtual or logical partitions, entitlements are required for all installed and
activated processors on the server. For each IBM Tivoli application managing a clustered
environment, licensing is based on the cumulative number of installed and activated processors on
each server in the cluster for each IBM Tivoli application managing the cluster. Where the cluster
includes physically partitioned servers, the considerations described above concerning physically
partitioned servers apply as well.

Enhanced Value-Based Pricing recognizes the convergence of RISC/UNIX and Microsoft Windows/Intel
technologies, in order to simplify the customer's licensing requirements, and to provide a smoother,
more scalable model. Pricing and licensing does not differentiate between non-zSeries server
platforms or operating systems. For some products, this platform neutrality extends to zSeries and
other host servers as well.

IBM Tivoli Enhanced Value-Based Pricing terminology definitions

Client device or client

A client device is a computer system that requests the execution of a set of commands, procedures,
or applications from another computer system that is typically referred to as a server. Multiple
client devices may share access to a common server. A client device generally has some processing
capability or is programmable to allow a user to do work. Examples include, but are not limited to,
notebook computers, desktop computers, desk side computers, technical workstations, appliances,
personal digital assistants, automated teller machines, point-of-sale terminals, tills and cash
registers, and kiosks.

IBM Integrated Facility for Linux (IFL)

This optional facility enables additional processing capacity exclusively for Linux workload, with
no effect on the model designation of a zSeries or OS/390® server. Consequently, executing Linux
workload on the IBM Integrated Facility for Linux will not, in most cases, result in any increased
IBM software charges for z/OS®, OS/390, VM, VSE, or TPF operating systems/applications. There is,
as indicated, a charge associated with the IFL; and there may also be a charge for applications that
run on the IFL.

The IFL may be dedicated to a single Linux-mode logical partition or it may be shared by multiple
Linux-mode logical partitions. Installations should note that the Linux workspace, enabled by this
facility, will not support any of the S/390® traditional operating systems (OS/390, TPF, VSE, VM).
Only Linux applications or Linux operating in conjunction with the Virtual Image Facility, an
environment that operates within a logical partition or in native S/390 mode and provides the
capability to create multiple Linux images, are supported by the IBM S/390 IFL.

Partitions

A server's resources (CPU, memory, I/O, interconnects and buses) may be divided according to the
needs of the applications running on the server. This partitioning can be implemented with physical
boundaries (Physical Partitions) or logical boundaries (Logical Partitions).

Physical Partitions are defined by a collection of processors dedicated to a workload and can be
used with systems that have either multiple cards or multiple frames, each of which can be
configured independently. In this method, the partitions are divided along hardware boundaries and
processors, and the I/O boards, memory, and interconnects are not shared.

Logical Partitions are defined by software rather than hardware and allocate a pool of processing
resources to a collection of workloads. These partitions, while separated by software boundaries,
share hardware components and run in one or more physical partitions.

Processor

A processor is a functional unit in a computer that interprets and executes instructions. A
processor consists of at least an instruction control unit and an arithmetic and logic unit. One or
more physical processors may be resident on a single chip. For multiprocessor chips, each processor
is controlled separately.

Server

A server is a computer system that executes requested procedures, commands, or applications to one
or more clients and/or other devices over a network. Examples include, but are not limited to, file
servers, print servers, mail servers, database servers, application servers, and Web servers.

Standby or backup systems

For programs running or resident on backup machines, IBM defines three types of situations: cold,
warm, and hot. In the cold and warm situations, a separate entitlement for the copy on the backup
machine is normally not required and typically no additional charge applies. In a hot backup
situation, the customer needs to acquire another license or entitlements sufficient for that server.
All programs running in backup mode must be solely under the customer's control, even if they are
running at another enterprise's location.

As a practice, the following are definitions and allowable actions concerning the copy of the
program used for backup purposes:

Cold

A copy of the program may reside, for backup purposes, on a machine as long as the program is not
started. There is no additional charge for this copy.

Warm

A copy of the program may reside for backup purposes on a machine and is started, but is idling, and
is not doing any work of any kind. There is no additional charge for this copy.

Hot

A copy of the program may reside for backup purposes on a machine, is started, and is doing work.
The customer must acquire a license or entitlements for this copy and there will generally be an
additional charge.

Doing work includes, for example, production, development, program maintenance, and testing. It
also could include other activities such as mirroring of transactions, updating of files,
synchronization of programs, data or other resources (for example, active linking with another
machine, program, database, or other resource, and so on), or any activity or configurations that
would allow an active hot switch or other synchronized switch over between programs, databases, or
other resources to occur.

In the case of a program or system configuration that is designed to support a high availability
environment by using various techniques (for example, duplexing, mirroring of files or transactions,
maintaining a "heartbeat," active linking with another machine, program, database, or other
resource, and so on), the program is considered to be doing work in the hot situation and a license
or entitlement must be purchased.

Passport Advantage:
Through the Passport Advantage Agreement, customers may receive
discounted pricing based on their total volume of eligible products,
across all IBM brands, acquired worldwide. The volume is measured by
determining the total "Passport Advantage points value" of the applicable
acquisition(s). Passport Advantage points are only used for calculating
the entitled Passport Advantage discount.

To determine the required Tivoli product configuration under Passport
Advantage, the Tivoli Enhanced Value-Based Pricing Model applies.
The customer's environment is evaluated on a per-product basis.

Use the following two-step process to determine the total "Passport
Advantage points value":

Analyze the customer environment to determine the number of charge units
for a product. The quantity of each product's part numbers to be ordered
is determined by that analysis.

Order the Passport Advantage part numbers. A Passport Advantage point
value, which is the same worldwide for a specific part number regardless
of where the order is placed, is assigned to each Tivoli product part
number. The Passport Advantage point value for the applicable part
number, multiplied by the quantity for that part number, will determine
the Passport Advantage points for that Tivoli product part number. The
sum of these Passport Advantage points determines the "Passport Advantage
point value" of the applicable Tivoli product authorizations which then
may be aggregated with the point value of other applicable Passport
Advantage product acquisitions to determine the total "Passport Advantage
points value."

The discounted pricing, available through Passport Advantage, is
expressed in the form of Suggested Volume Prices (SVPs), which vary
depending on the SVP level. Each SVP level is assigned a minimum total
Passport Advantage point value, which must be achieved, in order to
qualify for that SVP level.

Media packs and documentation packs do not carry Passport Advantage
points and are not eligible for SVP discounting.

For additional information on Passport Advantage, refer to the following
Web site

The following Passport Advantage part number categories may be orderable:

License and Software Maintenance 12 Months  this is the product
authorization with maintenance to the first anniversary date.

Annual Software Maintenance Renewal  this is the maintenance renewal
for one anniversary that applies when a customer renews their existing
coverage period prior to the anniversary date at which it expires.

Software Maintenance Reinstatement 12 Months  this is for customers
who have allowed their Software Maintenance to expire, and later wish to
reinstate their Software Maintenance.

Media packs  these are the physical media, such as CD-ROMs, that
deliver the product's code.

Documentation packs  these contain printed documentation such as the
User's Guide and Release Notes.

Pricing example:
All distributed products in this announcement are priced on the
"Processor" metric, unless otherwise specified.

The customer requires entitlements for each client managed. A minimum
order quantity of 100 clients is required.

IBM Tivoli Universal Agent
 priced per "server/client"

The customer must obtain entitlements for each distributed server and
client managed.

IBM Tivoli AF/Remote

The application or managing server (where the IBM Tivoli AF/Remote server
code is running) is the server to which the per-processor licensing
applies and is an exception to the Environment-Managed model.

Pricing example for IBM Tivoli AF/Remote: The customer wants to enable
secure remote control access from one of its servers. The customer
manages access from one of its two-way servers.

License transferability:
Charge units are product specific and may not be transferred to another product.

Note:
There is no transferability in licensing between platforms for end-to-end products where pricing on
the IBM zSeries platform is
based on MSUs and pricing on other platform servers is per processor.

Basic license

Ordering information for Passport Advantage:
Passport Advantage allows you to have a common anniversary date for Software Maintenance
renewals, which can simplify management and budgeting for eligible new versions and releases (and
related technical support) for your covered products. The anniversary date, established at the
start of your Passport Advantage Agreement, will remain unchanged while your Passport Advantage
Agreement remains in effect. New software purchases will initially include twelve full months of
maintenance coverage. Maintenance in the second year (the first year of renewal) can be prorated to
be coterminous with your common anniversary date. Thereafter, all Software Maintenance will renew
at the common anniversary date and include twelve full months of maintenance.

Refer to the IBM International Passport Advantage Agreement and to the IBM Software Maintenance
Handbook for specific terms relating to, and a more complete description of, technical support
provided through Software Maintenance.

The quantity to be specified for the Passport Advantage part numbers in the following table is:

Per processor for the following products:

IBM Editor for Messages for Distributed Systems

IBM Tivoli AF/Remote

IBM Tivoli IntelliWatch

IBM Tivoli Monitoring Alert Manager

IBM Tivoli OMEGAMON XE for WebSphere Application Server

IBM Tivoli OMEGAMON XE for WebSphere Business Integration

IBM Tivoli OMEGAMON XE for Distributed Systems

IBM Tivoli OMEGAMON XE for Databases

IBM Tivoli OMEGAMON XE for R/3

IBM Tivoli OMEGAMON DE for Distributed Systems

IBM Tivoli Web Response Monitor

IBM Tivoli Web Segment Analyzer

Per distributed server and client device managed for the following product:

IBM Tivoli Universal Agent

Per client device managed for the following product. A minimum order quantity of 100 client devices
is required.

IBM Tivoli ETEWatch

To order for Passport Advantage, specify the desired part number and quantity.

To order a media pack for Passport Advantage, specify the part number in the desired quantity from
the following table.

Note:
When ordering Japanese media pack part number BX007JA, IBM Tivoli OMEGAMON XE for WebSphere MQ is
the only component of IBM Tivoli OMEGAMON XE for WebSphere Business Integration that will be
delivered in the Japanese language.

These products are only available via Passport Advantage. They are not available as shrinkwrap.

Agreement:
IBM International Program License Agreement. Proofs of Entitlement (PoE) are required for all
authorized use.

Part number products only, offered outside of Passport Advantage, where applicable, are license only
and do not include Software Maintenance.

This software license includes Software Maintenance, previously referred to as Software Subscription
and Technical Support.

License Information document:
The terms of the hardcopy License Information document, delivered with the program package,
supersede the terms of the license information displayed during installation of the product.

Warranty:
These programs have warranty for a minimum of one year from acquisition from IBM or authorized
IBM Business Partner. The warranty provided to the customer, for at least one year from
acquisition, is access to databases (read Web sites) for program information and FAQs, including any
known fixes to defects, which the customer can download or obtain otherwise and install at leisure.

Program technical support:
Technical support of a program product will be available for a minimum of three years from the
general availability date, as long as your Software Maintenance is in effect. This technical
support allows you to obtain assistance (via telephone or electronic means) from IBM for
product-specific, task-oriented questions regarding the installation and operation of the program
product. Software Maintenance also provides you with access to updates, releases, and versions of
the program. Customers will be notified, via announcement letter, of discontinuance of support with
12 months' notice. If you require additional technical support from IBM, including an extension of
support beyond the discontinuance date, contact your IBM representative or IBM Business Partner.
This extension may be available for a fee.

Money-back guarantee:
If for any reason you are dissatisfied with the program, return it within 30 days from the
invoice date, to the party (either IBM or its reseller) from whom you acquired it, for a refund.
This applies only to your first acquisition of the program.

Copy and use on home/portable computer

Copy and use on
home/portable
Product name Computer?
IBM Editor for Msg for Dist Sys No
IBM Tivoli ETEWatch No
IBM Tivoli OMEGAMON DE for No
Distributed Systems
IBM Tivoli OMEGAMON XE for No
Databases
IBM Tivoli OMEGAMON XE for No
Distributed Systems
IBM Tivoli OMEGAMON XE for R/3 No
Copy and use on
home/portable
Product name Computer?
IBM Tivoli Web Response Monitor No
IBM Tivoli Web Segment Analyzer No
Tivoli AF/Remote No
Tivoli IntelliWatch No
Tivoli Monitoring Alert Manager No
Tivoli OMEGAMON XE for WAS No
Tivoli OMEGAMON XE for WebSphere No
Bus Integr
Tivoli Universal Agent No

Volume orders (IVO):
No

Passport Advantage applies:
Yes, and through the Passport Advantage Web site at

Usage restriction:
Yes. Usage is limited to the quantity of processors, servers, and
client devices licensed.

Software Maintenance applies:
Yes

Software Maintenance, previously referred to as Software Subscription and
Technical Support, is included in the Passport Advantage Agreement.
Installation and technical support is provided by the Software
Maintenance offering of the IBM International Passport Advantage
Agreement. This fee service enhances customer productivity, with voice
and electronic access into IBM support organizations.

IBM includes one year of Software Maintenance with the initial license
acquisition of each program acquired. The initial period of Software
Maintenance can be extended by the purchase of a renewal option that is
available.

While your Software Maintenance is in effect, IBM provides you assistance
for your routine, short duration installation and usage (how-to)
questions and code-related questions. IBM provides assistance via
telephone and, if available, electronic access, only to your information
systems (IS) technical support personnel during the normal business hours
(published prime shift hours) of your IBM support center. (This
assistance is not available to your end users.) IBM provides Severity 1
assistance 24 hours a day, every day of the year. For additional
details, consult your IBM Software Support Guide at

Software Maintenance does not include assistance for the design and
development of applications, your use of programs in other than their
specified operating environment, or failures caused by products for which
IBM is not responsible under this agreement.

For more information about the Passport Advantage Agreement, visit the
Passport Advantage Web site at

IBM Global Services has transformed its delivery of hardware and software support services to put
you on the road to higher systems availability. IBM Electronic Services is a Web-enabled solution
that provides you with an exclusive, no additional charge enhancement to the service and support on
the IBM eServer®. You should benefit from greater system availability due to faster problem
resolution and preemptive monitoring. IBM Electronic Services is comprised of two separate but
complementary elements: IBM Electronic Services news page and IBM Electronic Service Agent.

IBM Electronic Services news page provides you with a single Internet entry point that replaces the
multiple entry points traditionally used by customers to access IBM Internet services and support.
The news page enables you to gain easier access to IBM resources for assistance in resolving
technical problems.

The IBM Electronic Service Agent is no additional charge software that resides on your IBM eServer
system. It is designed to proactively monitor events and transmit system inventory information to
IBM on a periodic, customer-defined timetable. The IBM Electronic Service Agent tracks system
inventory, hardware error logs, and performance information. If the server is under a current IBM
maintenance service agreement or within the IBM warranty period, the Service Agent automatically
reports hardware problems to IBM. Early knowledge about potential problems enables IBM to provide
proactive service that maintains higher system availability and performance. In addition,
information collected through the Service Agent will be made available to IBM service support
representatives when they are helping answer your questions or diagnosing problems.